> Also there's the, often, I suppose, intentional confusion of terms. The free market of the economic theory is not an unregulated market, it's a market of infinitesimal agents with infinitesimal influence of each individual agent upon the whole market, with no out-of-market mechanisms and not even in-market interaction between agents on the same side.

Just to expand on this really interesting topic. That's where the common pitfall on planned economy begins. Because to some degree a free market can withstand some amount of regulation; after all, external agents trying to manipulate the market are just that, agents in the market. As long as there are other autonomous agents intervening the market will keep functioning as it was. So the bureaucrat has both the incentive and the justification to expand the intervention. In other words, his economical plan didn't work because it was not intervened enough and just if they intervene in this extra thing it will work for sure. That loop continues until the market is 100% intervened, and at that point it requires such a enormous structure of power and control that makes it difficult to fight it (clientelist networks, repressive states, etc).